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FinAcc188
Definitions
Term | Definition |
---|---|
Financial Position | It is the financial value of an entity at a particular moment in time |
Asset | A present economic resource, controlled by an entity, as a result of a past events, that has a potential to produce economic benefits. |
Liability | A present obligation of an entity, to transfer an economic resource, as a result of a past event |
Equity | Residual interest, as a result of accounting equation that represents financial value or value of funds invested by the owner |
Capital Contributions | Money/good that owner makes available to entity, owner rceives obligation against entity (↑ EQ) |
Capital Withdrawals | Money/ goods delivered to owner by entity for personal use, the obligation (legal right/ claim) of entity will decrease (↓ EQ) |
Income | Increase in assets or decrease in liabilities that result in increase in equity, other than those relating to contributions from holders of equity claims |
Expenses | Decreases in assets or increases in liabilities that result in decreases in equity, other than those relating to distributions to holders of equity claims |
Net Realisable Value | the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated cost necessary to make the sale. |